Addressing cross-border subsidies in countervailing duty investigations

(a) In general Section 701(d) of the Tariff Act of 1930 (19 U.S.C. 1671(d)) is amended— (1) in the subsection heading, by striking Treatment of international consortia and inserting Cumulation of cross-Border subsidies; (2) by striking For purposes and inserting the following: (1) International consortia and multinational corporations For purposes; (3) in paragraph (1), as designated by paragraph (2)— (A) by inserting after in their respective home countries, the following: or multinational corporations that are engaged in the production of subject merchandise receive countervailable subsidies to assist, permit, or otherwise enable their production or manufacturing operations in the country in which the class or kind of merchandise is produced, exported, or sold (or likely to be sold) for importation into the United States,; and (B) by inserting after the international consortium the following: or multinational corporation; and (4) by adding at the end the following: (2) Transnational subsidies (A) In general For purposes of this subtitle, if there is a countervailable subsidy by a government of a third country or any public entity within the territory of a third country with respect to the manufacture, production, or export of a class or kind of merchandise that is produced, exported, or sold (or likely to be sold) for importation into the United States from the territory of the subject country, and the government of the subject country or any public entity within the territory of the subject country facilitates the provision of such subsidy, then the administering authority shall treat the subsidy as having been provided by the government of the subject country or a public entity within the territory of the subject country and shall cumulate all such countervailable subsidies, as well as countervailable subsidies provided directly or indirectly by the government or any public entity within the territory of the subject country. (B) Application This paragraph shall be applied in a manner consistent with the international obligations of the United States.. (b) Definitions Section 771 of the Tariff Act of 1930 (19 U.S.C. 1677) is amended— (1) in paragraph (5A), by inserting after subparagraph (D) the following: (E) Transnational subsidy In determining whether a transnational subsidy is a specific subsidy, in law or in fact, the administering authority shall examine the situation in the subject country based on subparagraphs (B), (C), and (D).; (2) in paragraph (9)— (A) in subparagraph (F), by striking and at the end; (B) in subparagraph (G), by striking the period at the end and inserting, and; and (C) by adding at the end the following: (H) in any proceeding under subtitle A involving a transnational subsidy, the government of the third country.; and (3) by adding at the end the following: (38) Multinational corporation The term multinational corporation means a person, firm, or corporation that owns or controls, directly or indirectly, facilities for the production of subject merchandise in two or more foreign countries.. (c) Upstream subsidies Section 771A of the Tariff Act of 1930 (19 U.S.C. 1677–1) is amended by adding at the end the following: (d) Multinational corporations (1) In general This section shall apply to purchases of input products by multinational corporations if— (A) the multinational corporation manufactures or produces merchandise in a country that is the subject of a countervailing duty proceeding; (B) the multinational corporation purchases the input product from a cross-owned company located in a third country with respect to which the administering authority has made an affirmative determination under section 703(b)(1) or 705(a)(1) with respect to a countervailable subsidy provided— (i) for the manufacture, production, or exportation of that input product; or (ii) to that cross-owned company; and (C) in the judgment of the administering authority, the countervailing subsidy described in subparagraph (B) bestows a competitive benefit on that merchandise. (2) Timing of subsidy If a countervailable subsidy is provided to a multinational corporation or a cross-owned company that did not exist at the time the administering authority made an affirmative determination described in paragraph (1)(B), the administering authority is not precluded from examining the subsidy under paragraph (1). (3) Application This subsection shall be applied in a manner consistent with the international obligations of the United States. (4) Definitions In this subsection: (A) Cross-owned company; multinational corporation The terms cross-owned company and multinational corporation have the meanings given those terms as defined by the administering authority by regulation. (B) Upstream subsidy The term upstream subsidy has the meaning given that term in subsection (a), except that the term shall include an export subsidy..